Property not necessary and not a necessity

I laughed when a close friend related her conversation with a fellow manager in her company. The manager works in a US multinational so salary not much of an issue to buy a property. The manager said, he does need to buy a property, preferring to rent because when he needs to move back to his hometown, he can stay at his father’s home. While I advocate that everyone should at least own the property which he stays in, but after looking at this particular circumstance, perhaps there are a few reasons why the manager chose not to buy a property.

He was renting a flat, whole flat for just RM600. With that price I think it’s furnished. If he uses that flat as a benchmark, then he may feel not much different whether he buys or rent because the flat price in Penang does not move much anyway. If the property price does not increase much and the property is a low priced one, when you factor in the maintenance, the lawyer’s fee, the time spent etc, I do think it may be worthwhile to just rent. Note that this is particularly true for only this particular case.

He has also the mindset that he would like to move back to his hometown, thus perhaps he may be saving a lot of money for whatever reasons may be in his mind. When one has a very strong mindset that he should go back to hometown, it is not likely that he may want to own a piece of property in a place he calls as just a working place.

I believe also that he has never viewed any property to his liking because he may come from a smaller town where the landed properties are much cheaper than even the condos in Penang. The fact is, until today I have friends who said, it is crazy to pay RM500,000 or higher for a condo of which the land may be shared by hundreds of other units! Yes, even a lot of Penangites who has yet to buy a property still say the prices would crash soon because how can a condo be priced at RM700,000!

The world is a very strange place. One man’s meat is another’s poison. Come to think of it, if everyone in the world love to own a property, it is also not advisable because it may make the property price so expensive that even I may not have been able to buy one.My advice to people who really feel very strongly that they would love to rent, I think you should continue. No losses likely though the potential capital appreciation that you may enjoy is now nil as well.

written on 2nd jan 2014

next suggested article: Start as young as you can

Advertisements is everything about property related writings and news. Enjoy reading with a latte.

Related Posts

Fearing the worst for Malaysian banks?

I just wrote this article not too long ago: Important signs for the market; Banks’ results Banks are extremely important because they allow to see way in advance if the market is in trouble. Here’s a THREAT to Malaysian banks. Article in TheStar here. Moody’s Investors Service has announced that property loans are the greatest threat for Malaysian […]

Read More

Buying property is good debt, an asset? 3 issues here.

I favour property investment. I repeat, investment. I disagree with property speculation yeah. Certainly not using whatever method which enables anyone to buy a property or properties beyond what their salaries could afford. For this time, we revisit the thought that buying a property is good because this is a good debt and property will […]

Read More


  • Vincent Wong on January 4, 2014

    I think it’s good that not all folks wants to own properties, otherwise we landlords got nobody to rent it to.

    • chialih on January 4, 2014

      True Vincent. U must b a landlord for sure.

  • Hui Yi on January 4, 2014

    Haha, I love Vincent’s comment.

  • S B Lim on September 14, 2014

    I think it is about time to cash in from property investment and find another investment that the herd has not recognised …

    • chialih on September 15, 2014

      Perhaps true. Maybe cash position should be strengthened. Yet, I am still looking for potential property buys. secondary ones.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Property investment news everyday? Subscribe for free!

An article a day, keeps you updated all the way.

Join 898 other subscribers

LIKE us for property news update, FREE.

%d bloggers like this: